CITY OF GROVER BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 4
Placement: Public Hearing
Meeting Date: November 10, 2025
TO: Honorable Mayor and City Council
FROM: Matthew Bronson, City Manager
PREPARED BY: Megan Martin, Community Development Director Janet Reese, Associate Planner
SUBJECT: Public Hearing Regarding the Closeout of State Community Development Block Grant Contract 22-CDBG-NH-00015
RECOMMENDATION
Conduct a public hearing and receive a report summarizing the accomplishments performed under the State Community Development Block Grant Agreement 22-CDBG-NH-00015 and to solicit citizen input regarding expenditures and accomplishments of the funding received under the contract; and direct staff to proceed with submitting required documents for closeout to the State.
BACKGROUND
The U.S. Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG) program authorizes the use of funds to provide decent housing, suitable living environments, and economic opportunities to low- and moderate-income families. There are two types of CDBG programs: “entitlement1” and “non-entitlement.” The “non-entitlement” program is administered by the State Department of Housing and Community Development (HCD).
Beginning in 2013, the City has participated in the “non-entitlement” program where the City can apply for available funding under a competitive application process. The HCD publishes a Notice of Funding Availability (NOFA) for each program year for eligible projects. Since 2013, the City has received grant awards for the following projects:
City Awarded Programs
Waterline Improvement Project (2013, 2017, 2020) $5,900,000 Subsistence Payments/Eviction Prevention Program (2013, 2017, 2020) $840,000 Security Deposits/Rapid Rehousing Program (2013, 2017, 2020) $303,000 Childcare Training Program (2020 Coronavirus) $51,000
Warming Center Operation Program (2020 Coronavirus) $163,000 Homeless Services Program (2020 Coronavirus) $256,000
Homeless Shelter Operation Program (2022) $500,000
Planning/Technical Studies (2013, 2017)2 $200,000
1 Metropolitan cities and urban counties are entitled to receive annual grants from HUD under the “entitlement” program. Metropolitan cities are principal cities or Metropolitan Areas (MAs), or other cities within MAs that have populations of at least 50,000. Urban Counties are within MAs that have a population of 200,000 or more excluding the population of metropolitan cities within their boundaries.
2 Includes Housing Element Update, Economic Development Study, Senior Center Feasibility Study Staff Report: 2022 CDBG Contract Closeout Page 2
November 10, 2025
Ramona Garden Park Rehabilitation Project Phases 1 and 2 (2023A) $3,300,000 Housing Navigation Center Operations (2024) 300,000
Total $11,813,000
To officially close out a contract, the City is required to first conduct a public hearing to solicit input regarding expenditures and accomplishments of the funding received under the contract and then submit required documents to HCD. On April 19, 2022, HCD published a Notice of Funding Availability (NOFA) for 2022 CDBG funds for program activities. Subsequently, the Council authorized an application for a Homeless Shelter Operation Program administered by 5Cities Homeless Coalition (5CHC). The City was awarded $500,000 for the program, and HCD issued contract 22-CDBG-NH-00015 on July 14, 2023.
5CHC operates Cabins for Change, a 20-bed non-congregate shelter in Grover Beach. The 90- day program offers shelter and wrap-around case management to individuals experiencing homelessness. All individuals complete a comprehensive assessment upon entry to identify needs and barriers related to their housing instability. Case Managers work with clients to create individualized case plans focused on the goal of securing and maintaining permanent housing at program exit. Between July 2023 and May 2025, 12,344 shelter nights were provided, for 109 unique individuals at the Cabins for Change shelter. During this period, 48 individuals secured permanent housing, and 11 individuals secured temporary housing for a 67% housing placement rate. There are currently 21 individuals still enrolled in the Cabins for Change shelter program.
In total, 5CHC utilized $467,000 in activity funds that were used to offset the costs at the Cabins for Change shelter. The costs included, but were not limited to, staff salaries at the shelter, HMIS entry, food and drinks, shelter supplies, utilities, cleaning, linen services, and more. The remaining $33,000 were utilized for grant administration by staff and their consultant and thus the funds have been fully expended.
FISCAL IMPACT
There are no funding impacts to this report.
ALTERNATIVES
The Council has the following alternatives to consider:
1. Conduct a public hearing, receive public comment and review the accomplishments performed under the 22-CDBG-NH-00015 agreement; and provide direction for staff to send the HCD required closeout forms and documents; or
2. Provide alternative direction to staff.
Staff Report: 2022 CDBG Contract Closeout Page 3
November 10, 2025
Multi-Year Goals
☐ Public Safety and Community Services ☒ Economic Development and Housing ☐ Community Infrastructure ☒ Financial and Organization Sustainability Council Priorities
☐ Water & Wastewater Infrastructure ☐ Community Engagement
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act. The public hearing notice was published in the Tribune October 29, 2025 and New Times on October 30, 2025, in English and Spanish, as required by HCD. In addition, the notice was also posted on the City Hall bulletin board, City website, and social media accounts on October 29, 2025. 5Cities Homeless Coalition was also notified of the meeting.